Introduction

Update: Mexico's Energy Industry & Political Environment

Mexico ranks 7th. in world crude oil proven production and 21st. in natural gas proven reserves. However, the sector faces a twofold challenge. First, energy demand is currently growing faster than total GDP. Given the importance of energy as crucial input for the rest of the economy, it is clear that the sector requires large amounts of investment in the near future. Second, the energy sectors of many countries are going through profound processes of structural reform aimed at introducing a greater degree of private participation and competition; Mexico must study this new global framework to ensure its competitiveness.